SCOTT Timber, the UK’s biggest pallet group, has taken another step towards reaching its turnover target of £50m after buying a struggling English rival.
The Rosyth-based company - one of the 10 largest pallet makers in the world - boosted revenues by £4m to more than £40m after buying Widnes-based Hammond Pallets for an undisclosed amount last month. Hammond Pallets, which employs around 40, was bought out of receivership, which means that Scott Timber is likely to have paid a lower price than if it had been trading profitably.
John Scott, managing director of Scott Timber, said that the deal put the company on course to reach the £50m target in the next three to five years. As part of the deal, Scott Timber has taken on the UK’s most advanced pallet-making machine - the £1.6m Italian-made Corali - which is capable of producing seven pallets a minute.
John Scott said: "Hammond has an experienced workforce, a diverse range of
customers, state-of-the-art equipment and it is in an excellent geographical location for future growth."
The purchase tops a busy period for Scott Timber, which recently won a £2.5m, three-year contract with Marley, the English building materials group, to provide on-site manufacturing and repair services to the Midlands-based firm.
On the back of the deals, Scott Timber has appointed Karen Hunter - the sister of managing director John Scott and director Norman Scott - as sales and marketing director.
David Hustwayte, a senior partner with Glasgow solicitors Kerr and Company, joins as projects director, focusing on developing retail operations.
Karen Hunter, who recently completed an MBA from the University of Abertay, said: "Until now, the growth of the company has been largely through word of mouth but, in order to open up new areas of business and ensure continued growth, it was felt we required a stronger marketing focus.
"I have always had an interest in the family business, so I am relishing the opportunity to be hands-on and help consolidate our acquisitions and maintain our standing as an innovative market leader."